The legacy of complexity in the superannuation industry is about to be turned on its head, says ING DIRECT’s Executive Director of Customer Delivery Lisa Claes, with the growth of digital bringing greater transparency for superannuation customers.
It’s almost difficult to remember what it was like to do banking before the digital era. These days, consumers are used to accessing their money anytime, anywhere and on any device that the concept of not being able to bank whenever they want is hard to grasp.
But while consumers are finding it second nature to do their everyday banking online, one aspect of financial services where digital has made little impact so far is superannuation. I believe this is about to change dramatically over the next few years – and for good reason.
Digital is no longer optional
The super industry has been able to hide behind a veneer of complexity so far, but now it needs to adapt simply to align with the mindset and behaviour of the next generation.
If we consider who the wealth protectors and providers of tomorrow are, they’re those who are under 35 years old. On the whole they prefer to interact digitally; they’ve grown up online and are used to 24/7 access to their finances and expect to engage with their super that way too.
A focus on utility and transparency
The good news is despite the super industry lagging behind the rest of financial services when it comes to digital investment positive change is slowly starting to happen.
It started with a transition from paper-based applications to pre-populated online forms but what I think we’ll be seeing more of in the innovation and super space is focus on utility – developing tools which will help customers really take control of their super.
This thinking goes beyond simple calculators, which help consumers work out things such as how much they are on track to retire on, to fully customised and personalised tools.
Imagine if you could determine your own risk profile online and immediately be presented with a selection of funds which meet your requirements. Or, receiving an SMS alert whenever your investment moved 10% either side of your risk boundary, keeping you fully informed and in control of your retirement planning.
Digital as a driver of engagement
Australians on the whole have struggled with the complexity involved in managing their superannuation and building up retirement savings. If we want to build an increasingly self-sufficient population of retirees then super fund providers need to break down existing barriers hindering people in this regard.
Financial engagement at its heart is about making it easy for people to understand, interact with and take control of their money. If we want people to be as comfortable managing their superannuation as they are their everyday banking, I believe digital is an invaluable platform to do so.
